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Top Crypto Gifts for New Year

Isabella S. | 13 December, 2024

The Rise of Deep Fakes in Crypto World – Here’s How to Avoid Dangerous Crypto Scams

The AI technology has come to a point where it is now generating clones of voices, faces, and even entire personas, using them to target your hard-earned crypto.

These scams combine AI-generated fake content with the growing popularity of crypto, and it is a deadly cocktail. To avoid dangerous crypto scams, you need to understand the mechanics of these schemes, recent examples, and proactive steps to protect your assets.

What Exactly Are Deep-Fake Crypto Scams?

Deep-fake crypto scams involve using AI to create fake but highly realistic videos or audio clips of influential people. Scammers use these fake materials to impersonate tech leaders, celebrities, or public figures to endorse scam crypto projects.

By doing so, they strive to build credibility and lure victims into sending their funds to fraudulent platforms. The crypto space saw a 217% increase in deep-fake-related scams in 2024 and $6.3 billion in losses in the first quarter alone. These scams are expected to get even worse in the coming years.

At Coinsdrom, we make sure our customers can buy and sell crypto safely, and avoid dangerous crypto scams. Be it buying crypto with credit cards, wire transfers, or local payment solutions, we have measures in place to keep your funds and data safe.

A Look at Some Recent Deep-Fake Crypto Scams

Deep-fake scams have become alarmingly common, with fraudsters targeting crypto market participants through well-crafted videos and fake endorsements.

Tim Cook’s Crypto Launch Scam

Scammers created a deep-fake video of Apple CEO, Tim Cook, during the iPhone 16 launch, asking viewers to pour their funds into a fake crypto project. Embedded QR codes and links channeled victims to fraudulent platforms, causing huge losses.

Elon Musk’s $20 Million Giveaway

Another scam involved a deep-fake video of Elon Musk promoting a crypto giveaway. The video went viral online and fooled many before warnings were issued globally.

Trump’s Crypto Giveaway

In one alarming case, a website using the “Make America Great Again” logo and Donald Trump’s image was launched. It claimed to be hosting “Trump’s biggest crypto giveaway of $100,000,000”, urging users to send crypto to a specific address with a promise of doubling their amount.

This scam was promoted through deep-fake videos, featuring manipulated speeches of Trump and Elon Musk endorsing the giveaway. Though the voices sounded like the figures, the lip movements were way off—a common deep-fake red flag.

These cases highlight the sophistication of deep-fake scams and the need for vigilance in the crypto space.

How to Avoid Dangerous Crypto Scams Like Deep-Fake 

As deepfakes get more realistic, you need to be proactive. Here are some steps you can take to avoid dangerous crypto scams:

  • Use AI for Defense

Just as AI is used to create deepfakes, it can also detect them. Tools like deep-fake detectors and video authentication software can help verify the authenticity of video content. Many of these are available for personal use or as browser extensions.

  • Verify Sources

Always cross-check any crypto-related announcements or promotions with official company websites or verified social media channels. If a video or live stream looks suspicious, research before you act.

  • Watch Out for Urgency

Scammers create a sense of urgency, telling you to act fast on limited-time offers or guaranteed returns. Legit initiatives do not require you to rush.

  • Look for Red Flags

Pay attention to video quality, inconsistencies in speech, or unusual phrasing. Trust your gut if something feels off.

  • Stay Educated

The best defense is awareness. Stay up to date with the latest scams and learn from trusted sources.

Deep-fake crypto scams are a reminder of the dark side of technological progress; but with the right precautions, you can effectively avoid dangerous crypto scams. We, at Coinsdrom, prioritize advanced security features, transparent payment processes, and user-friendly interfaces that can help protect you from such scams. Our key focus is to make the experience of exchanging crypto safer and smoother for all users.Risk warning: The exchange of digital currency is considered a risky transaction with highly speculative outcomes. Purchasing or selling Cryptocurrency carries significant risk. The company does not act as a financial advisor, does not provide investment advisory services or guidance. The company does not guarantee any profit from any activity associated with its services. You should carefully consider if holding digital currency is suitable depending on your financial circumstances.

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